Business inventories are forecast to have increased 0.3% in March after rising 0.1% in February. The Census Bureau releases this data at 10 a.m. EDT.

Data from the world's second-largest economy was also weighing on sentiment, with China's April industrial output report rising only mildly and disappointing expectations. The modest increase in April retail sales also added to worries about a feeble economic recovery in China. The country also reported that its fixed-asset investment unexpectedly decelerated in April.

"This set of data still suggests a painfully slow mend of China's growth momentum," Yao Wei, a Hong Kong-based economist with Societe Generale SA, wrote in a report.

Carnival shares were shedding more than 1% to $34.72 as investors continue to digest the troubles that have hit the cruise line operator, with the latest event being two Australian passengers who went missing in the ocean after falling out the cruise ship. The search for the two was called off Friday. The company has provided assurances that its railings are more than sufficiently high to prevent accidental falls.

Elan and Theravance reached a $1 billion agreement in which Elan will buy 21% of royalties that Theravance receives from GlaxoSmithKline for four respiratory drugs. Elan shares were slipping 0.34% to $11.74, while Theravance was surging more than 12% to $39.25.

The deal includes Breo Ellipta, a new treatment for chronic obstructive pulmonary disease that received approval from the Food and Drug Administration last week.

Futures for the Dow Jones Industrial Average were falling 17 points, or 25.49 points below fair value, to 15,051. Futures for the Nasdaq were down 4 points, or 5.92 points below fair value, to 2,971.5.

The Hong Kong Hang Seng Index finished down 1.42% Monday. The Nikkei 225 in Japan closed up 1.2%. The FTSE 100 in the UK was falling 0.27% and the DAX in Germany was down 0.64%.

June gold futures were down $9.40 to $1,427.20 an ounce. June oil futures were sliding $1.15 to $94.89 a barrel.

The benchmark 10-year Treasury was rising 2/32, diluting the yield to 1.897%. The dollar was up 0.04% to $83.18 according to the U.S. dollar index.